GENERAL COMMENTS:
Before we all jump up and down and shout from the rooftops that the markets closed higher, we need to be cautious and unemotional, like we constantly preach. Trends take time to be established in the marketplace, and although the day closed mostly higher, that doesn't mean the market is in the free and clear. The market could very easily be hit with another coronavirus headline that could send markets lower and reverse the day's gains by the first bell of Tuesday morning. Taking the day for what it is, is important, and we must be cautious not to read more into the present than what is. Hog prices closed lower on the National Direct Daily Hog Report, down $0.41 with a weighted average of $50.20. May corn is up 7 1/4 cents per bushel and May soybean meal is up $3.30. The Dow Jones Industrial Average is up 1,293.96 points and NASDAQ is up 384.79 points.
LIVE CATTLE:
Live cattle contracts had a fruitful day, closing significantly higher throughout the entire complex. April live cattle closed $2.57 higher at $110.15, June live cattle closed $2.77 higher at $103.97 and August live cattle closed $2.07 higher at $104.35. It's too early in the week for cash cattle trade to develop, and Monday was a typical day despite the board closing higher. Asking prices and bids are yet to be established, but if the market keeps moving higher, feeders will be glad to reciprocate a positive movement in the cash market.
Boxed beef prices closed higher: choice up $1.23 ($206.53) and select up $2.25 ($201.16) with a movement of 79 loads (47.74 loads of choice, 14.16 loads of select, 7.69 loads of trim and 9.10 loads of ground beef). Monday's slaughter is estimated at 121,000 head, 3,000 head more than a week ago and 4,000 head more than a year ago.
TUESDAY'S CASH CATTLE CALL: Steady. Until we understand how the board is going to move this week, it's best to call this week steady until the board builds up strong support or packers aggressively seek out cattle.
FEEDER CATTLE:
Feeder cattle markets traded fully higher to start the week out on a positive note for a change. March feeders closed $2.45 higher at $133.72, April feeders closed $2.35 higher at $135.05 and May feeders closed $2.45 higher at $135.97. Given the emotional roller coaster the market has been on the last two months, it would be phenomenal if the market could start to establish a bottom to the coronavirus plunge and start to climb to higher prices right before spring hits.
At Joplin Regional Stockyards in Carthage, Missouri, 3,300 head of feeders sold, and in comparison to last week, steers and heifers under 500 pounds sold steady to $5.00 lower, steers weighing 500 to 700 pounds sold steady to $3.00 higher, and heifers over 500 pounds sold steady to $3.00 lower. There was good demand for calves that could go to graze this spring and moderate demand for yearlings that were feedlot bound. The CME feeder cattle index 2/27/2020: not available at this time.
LEAN HOGS:
The lean hog market kept with its steady pace throughout the day; nearby contracts traded slightly lower while deferred contracts traded higher. April lean hogs are up $0.52 at $62.80, June lean hogs closed $0.20 lower at $77.02 and July lean hogs closed $0.32 lower at $77.97. Although most of the livestock complex closed higher, the market is still entrenched with doubt and uncertainty. Trends take time to be established and if the market is going to start putting a bottom on the dive lower, it's going to take time for both the market and traders to believe and trust the direction. Pork cutouts totaled 297.72 loads with 269.93 loads of pork cuts and 27.79 loads of trim. Pork cutout values: up $2.43, $66.55. Monday's slaughter is estimated at 495,000 head, steady with a week ago and 32,000 head more than a year ago. The CME lean hog index 2/27/2020: down $0.03, $56.33.
TUESDAY'S CASH HOG CALL: Steady to slightly higher. If the market can keep its upward pace, producers may be able to squeeze some more profits out of packers, as packers are still rigorous on their kill schedules.
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